Starting a successful business is dependent on many factors. The main one is the drive that the entrepreneur has to succeed. Anyone willing to enter the business world must be a risk taker and someone who is future oriented. Risking one’s capital and labor for the intention of making money is no simple feat. It calls for one to be determined and focused. A business man should purpose to establish his business which will last into the future. Therefore, an entrepreneur ought to draw an ideal plot ahead and observe the trends in the current market. This will give him an thought on how things will be like in the future hence help cushion and prepare him in case of any eventuality. An entrepreneur should seek to fill a gap in the market or fulfill a need in the market; this is by turning a business thought into a business opportunity. This therefore calls for a business owner to be observant and creative enough to identify such a need or gap. Entrepreneurship success also relies on effective management policies and offering of quality services or products. Starting a business would require a business owner to connect with like minded people who will advice and mentor him on effective business management skills. Surround yourself with business oriented, focused and positive minded individuals. Attending business lectures will also equip you to succeed in conducting offline or online business. So if you have a business thought, implement it today for tomorrow might be too late. While others are still waiting for favorable conditions to start their business, seize the opportunity to make money now.

In nearly every place in the world now, recession has been a well known problem. Most people are searching for an alternative income to be able to sustain their daily needs and their family as well. In my own point of view, it will be a huge help and really much better if people will have their own business to grow and take care of. It does not necessarily mean that it needs to be a huge business, a small business will do. Who knows that small business can be huge someday? With hard work and perseverance, everything is possible.
When you build your own small business or start entering the entrepreneurship world, the best thing to start is what you like to do. I always believe that as long as you like what you do then you can be successful, because there is that certain motivation of doing your best in that field. You will not get bored or somehow feel frustrations because you like the business that you have, you like the concept of it.
Start investing in an amount that you can afford to lose. I’m not saying that you have to reckon negative that you will just lose the business but then it will be better if you will reckon of all sides of it. You have to reckon of what will happen to you if the business goes ok or if it goes down. Reckon of the advantages and disadvantages. Everything the can happen to you business.
Starting from a small business and entrepreneurship can lead into a huge bang business in the near future. Nothing to lose if you will try. You will certainly gain experience and knowledge that you can use in the long run.

Innovation is one of the major driving forces that lead to personal financial freedom. If today you were to find a way to touch people’s lives, you’ll certainly get inside their wallets. Business opportunities are all around us but it’s only those who are observant and alert seize these chances to make money. Today allow me to write about the art of entrepreneurship. It involves the skills of generating a business thought and turning it into a business opportunity. Besides being self employed, generating a business thought is the very first step in becoming financially independent. It may involve listening to what people say and identifying an unsatisfied need then taking initiative to start a business and fulfilling that need. Entrepreneurship is accepting investment risks and seizing a business opportunity to implement a prospective business thought. This is based on a business owner seeing the possibility of success in a particular project. In simple terms, it’s a chance which can be exploited by selling a product or service at a profit. Carefully observe your neighborhood and you’ll identify a business opportunity. With the current economic hardship, people must seek to start up their own small business to supplement their income. Then from there set up sound management systems to ensure that these businesses prosper. It is also advisable not to stick with one income stream, but have several income channels. There are excellent and legitimate online businesses that one can invest in as part time. So don’t depend entirely on employment but instead have a fall back plot just incase.

If you desire to make money and realize financial freedom then starting a small business would be a legitimate way out. Many of us are not pleased at our work places but keep up to place food on our tables. If given an option, most of us would certainly opt out of our regular jobs. As much as the risks are high once a business starts generating profits, the entrepreneur can then start the journey towards financial freedom. Statistics show that most businesses fail within their first five years. But this should not be a reason for us not to try out either offline or online business. Entrepreneurship is more about taking risks, conducting thorough market research, being innovative and most importantly having passion to succeed. The other thing that needs to be looked at seriously is management of business accounts. Poor financial management has brought down many businesses. Thanks to the internet one can now outsource affordable accounting services. Link up with people who have already succeeded in business and allow them to mentor you. You can also attend lectures on entrepreneurship and learn guidelines to follow that will ensure your business survives. Reading business related books, journals and magazines will also keep you informed on current business trends and marketing tips. Yes, there are possibilities that your business may not work but it all comes down to what scares you more; your business collapsing one day or waking up one morning and learning you never took a shot at your dreams.

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Making a successful business is about more than financial achievement; it’s more about the satisfaction of making a service or a product.   It’s about taking something that didn’t exist before and making it become reality.   It’s about the sheer enjoyment of focusing on a vision and enjoying the risks and possibilities that come from making a business through entrepreneurship.   More and more Americans are leaving the corporate environment and becoming their own bosses.   Some enter the realm of business ownership as a result of a downsizing, others as a result of a mid life crisis.   Whatever the reason, the growth of small, privately owned business across the nation is at record levels.   The bottom line is we live in a country that allows us realize our dreams, both professionally and personally, if we work hard.    Your passions will help you to make a business you know.   That’s very vital – do something you appreciate – something you delight in.   Do what you know.   Do what you like.   Success is never a foregone conclusion, but if you do something you identify with, you’re more likely to realize positive results.   Remember, an entrepreneurial attitude is just as vital to a firmly established company as it is to a start-up.   If you can maintain the “start-up” approach to building the business, you foster a mentality of accomplishment throughout the organization, no matter what its age or its size.   But never forget – entrepreneurship is hard.   Your attitude can make all the difference.   There are always challenges and you should focus on opportunities rather than problems.   Make the customer number one and strive for high productivity.   If you have employees, make sure you set the pace and the example and foster an attitude that makes an “ownership” process throughout the company.   Don’t ever stop taking reasonable and evaluated risks.   Communicate your vision with employees and customers and keep it simple.    Don’t be misled; there is a lot of information to learn.   Business owners need to develop working relationships with a variety of individuals including customers, wholesalers, dealers, staff, bankers and other professionals such as lawyers, accountants and other specialized professionals.   Entrepreneurs must make vital decisions daily, often at a moment’s notice and most times, under pressure.   Owning a business can be very challenging but remember it’s going to take a lot of hard work and long hours.   Get to know your strengths and your weaknesses and then adjust to make sure that success becomes more likely.   Entrepreneurship isn’t always as attractive and glamorous as some pundits may described. Question someone who’s done it. If you start your own business, life as you know it will never be the same.   It might be better than expected, then again, it just could be worse than you could ever imagine; but it will certainly be different from anything you’ve ever done.    If you choose to make a go of it, follow your heart, your passions, and learn all you can about your business and your customer base.   Perhaps your company will be the next one that is included in the Forbes Celebrity 100 as a global billion dollar a year power player.   Keep pushing forward and never give up.  

The economic recession that Americans are currently facing started quietly in 2007 yet has now mutated into a national nightmare.   More than 15% of the workforce is unemployed– a record high.   Additionally, since the fall of 2008, unemployment numbers have risen, the average work week has shrunk and the hourly wage growth has slowed.   News sources remain optimistic in mentioning that we are slowly pulling ourselves out of this depression but things have yet to look up in this economic struggle. One thing that has not changed is the type of businesses that continue to boom despite any economic turmoil surrounding other corporations.   The type of business I am referring to is an entrepreneurship.   Since the 1980s, nearly all governments have embraced entrepreneurship not only because it works but because it promotes innovation.   Throughout the decades, these are the types of businesses that have bloomed in the face of a struggling economy.   A successful entrepreneurship is one that caters to a rising demand and makes a stronghold during rough times therefore allowing it to continue to grow even when other corporations return to their status quo.   Microsoft, the most successful computer software business, which has now become a household name, started with one inventive entrepreneur – proof that a small creativity can go a long way. Becoming an entrepreneur may seem a daunting task considering you would have to leave the comforts of your current position and venture into an unknown world of business where your future is in your hands alone.   Online programs are designed to guide your creativity and help you in successfully molding your thoughts into a lucrative business endeavor.   One of the newest business ventures that caters to a rising demand is an internet marketing businesses.   This type of business allows for personal creativity and self-direction while being 100% recession proof.   Other perks to this entrepreneurship are the ability to work from home and make as much money as you desire.   The amount of work that you take on for yourself is unlimited, therefore no salary caps or pay decreases exist. Look online for a turn-key system that fits your lifestyle and needs.   Reliable programs are ones that allow you to start up your business with only a computer, internet connection and bank account.   Start a business today that will help in securing your future for tomorrow.

Entrepreneurship: Definition, Types, and Motivational Factors Definition The word entrepreneurship has been derived from a French root which means “ to undertake”. It is also called by various names, e. g. adventurism, risk taking, thrill seeking, innovating, etc. According to Higgins, “ Entrepreneurship is meant the function of seeking investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging the supply of raw materials, finding site, introducing a new technique and commodities, learning new sources of raw materials and selecting top managers of day-to-day operations of the enterprise. Jaffrey A. Timmons has defined entrepreneurship as “the ability to make and build something from practically nothing. Fundamentally, a human creative activity, it is finding personal energy by initiating, building and achieving an enterprise or organization rather than by watching, analyzing or describing one. It requires the ability to take calculated risk and to reduce the chance of failure…. . ” According to A. H. Cole “entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services. ” Characteristics and Significance A Function of High Achievement: People having high need for achievement are more likely to succeed as entrepreneurs, according to McClelland. Motive is high achievement and profit  is merely a measure of success and competency. Innovation: According to Schumpeter, entrepreneurship is a creative activity. An entrepreneur is basically an innovator who introduces something new into the economy. Organization Building Function: According to Harbison, Organization Building skill means the ability to “ multiply oneself” by effectively delegating responsibility to others. A Function of Managerial Skills and Leadership: Managerial skills and leadership qualities are more vital than financial skills A Function of Status Withdrawal: According to Hagen,” Creative innovation or change is the fundamental feature of economic growth. He describes an entrepreneur as a creative problem solver interested in things in the practical and technological realm. Types of an Entrepreneur Innovating Entrepreneur: Aggressive in experimentation and clever in putting attractive possibilities into practice. Adoptive or Imitative Entrepreneurs: They adopt best practices. Imitative entrepreneurs are revolutionary and vital. Fabian Entrepreneurs: Drone Entrepreneurs: Against any change in production method even at the cost of losses. Forced Entrepreneurs: They become entrepreneurs on account of    circumstances Functions of an Entrepreneur Perceiving market opportunities Gaining command over scarce resources Managing human relations within firms Marketing of the products Responding to the competition Dealing with bureaucracy Managing finance Upgrading process and product quality Managing costumer and supplier relations Introducing new production techniques and products Risk Taking Organization and management Qualities of a excellent entrepreneur According to McClelland: An unusual creativeness A propensity of risk taking A strong need for achievement According to Prof. Tandon : 1. Capacity to assume risks 2. Technical Knowledge and willingness to change 3. Ability to marshal resources 4. Ability of organization and administration According to more than fifty research studies: Total commitment, determination and perseverance Drive to achieve and grow Opportunity and goal orientation Taking initiative and personal responsibility Persistent problem solving Realism and sense of humor Seeking and using feedback Calculated risk taking and risk seeking 9.   Low need for status and power 10.   Integrity and reliability 11.   Capacity to work hard 12.   Self Motivation 13.   Vision and foresight 14.   Sound Judgment 15.   Flexibility and sociability 16.   Persistence in the face of adversity 17.   Will to conquer and impulse to fight Entrepreneurial Motivation Factor Educational background Occupational Experience Desire to work independently Desire to branch out to manufacturing Family background Help from Government Help from financial institution Availability of technology/raw material Profit margin Desire for taking personal responsibility Anticipation of future possibilities Success tales of entrepreneurs To gain social prestige Heavy Demand Technical knowledge

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                                   “SOCIAL ENTREPRENEURSHIP”                                                            BY                                               YESHWANT  G. TRASI                              FREELANCE U. N. DEVELOPMENT JOURNALIST Long shunned by Economists, whose interests have gravitated toward market-based, price-driven models that submit more readily to data-driven interpretation, entrepreneurship has experienced something of a renaissance of interest in recent years. Any definition of the term “Social Entrepreneurship” must start with the word “Entrepreneurship”. The word “Social” simply modifies Entrepreneurship. If Entrepreneurship doesn’t have a clear meaning, then modifying it with Social won’t accomplish much, either. Social Entrepreneurship is as vital to the progress of societies as is Entrepreneurship to the progress of economies; and Social Entrepreneurship merits more rigorous and serious attention than it has attracted so far. The Social Entrepreneurship should be understood as someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large. But interest in Social Entrepreneurship transcends the phenomenon of popularity and fascination with people. Social Entrepreneurship signals the imperative to drive social change, and it is that potential pay off, with its lasting, transformational benefit to society, that sets the field and its practitioners apart.  (The Writer is a Certified Management Consultant (CMC) & Managing Consultant, Management Development Systems Consultants (MDSC), Bangalore, India. He is also a Freelance U. N. Development Journalist and Communications & Social Marketing Consultant, U. N. Global Compact).  

I started my first business silk tie retailing using a ready made website template and shopping cart. This was because I did not want to spend a lot of money having a site built and did not know anything about web retailing so wouldn’t be able to specify what I needed anyway. It seems to me that this was a excellent choice. It meant that I could concentrate my work on getting the product, merchandising, sales text and internet marketing right and not worry too much about the other stuff. As I have progressed I have wanted to change some things in the site design but it has been honestly simple and cheap to do so and I have changed only the things that really needed to change. I got my website from www. DPBUk. co. uk who have been excellent but there are many other companies out there selling ready made retailing websites.

The first step in getting the business up and running was to add my sales text. I chose to aim initially at the UK market only as that is the one I know and is less competitive than the us. My sales text for the front page aims to do a few things; show that I am UK based, show that people can trust and rely on the site (site looks professional, address is prominent, email and phone numbers are listed, money back guarantee and testimonials from customers) and encourage people to browse the ties knowing that prices are reasonable and shipping is free.

Next priority was to make finding the right tie simpler. I did this by making all sorts of categories; by colour, by style etc. Then was the grinding effort as going into every tie in the catalogue and adding it to various categories. This effort was well worth while but, if people can’t quickly find what they are looking for then they will go elsewhere. It is so simple on the internet to pop into the next shop that you must make it very simple for people. Not only did I categorise every tie in to multiple categories, but I also tagged each tie with a basic description so that the Search box on my site would pull up relevant searches. Finally I selected what I thought were the nicest ties for the featured products on the front.

Final priority was pricing. I wanted the pricing to be competitive and to be easily changed, so that I could experiment and find the best pricing. I also wanted to make it clear to people that prices were much lower for the quality than you would get on the high street. I therefore chose to place high-street retail pricing in and then use a Sale to reduce the price to a competitive internet level. This has worked honestly well, although I reckon I under-priced initially. Now I am slowly increasing prices and it does not seem to be hurting sales. In pricing I wanted to have progressive quantity discounts to encourage people to buy more silk ties, but the cart system couldn’t handle it. In the website administration it did have bands for price by quantity which I filled in for every product, only to find that it only worked if you bought multiples of the same silk tie. I haven’t yet found a way of doing what I want with the cart, but am glad that I left the volume discounts bulk buying of the same tie in. I get lots of orders for multiples of the same tie from clubs, companies and weddings and having the discounts has definately paid off.

Have a look at the site at www. tiespecialist. com to see the design in action. After a week or so have work every evening and weekend the site was looking excellent enough to go. I placed a few trial orders for silk ties to make sure everything worked. It didn’t. Test, test and test again until it works fantastic. Finally the moment of truth, I was ready to go live and start getting customers.

Google AdWords has been the largest expense in getting the business going. To have a successfull internet business you have to get people to come to your site. When you start a high-street shop you have passers by to sell to but when you start a new website you have no passers by. Google does not rank new websites highly so no one will find you by accident. The only way to get visitors quickly is to advertise. I figured that offline advertising wouldn’t be very excellent, much better to sell to people when they are at their computers already. I also figured that banner ads and listing sites are poor value for money. I therefore focused all my advertising on AdWords first and then Overture.

AdWords is a very clever system. Completely automated, it allows you to advertise to people whoare searching for particular keywords in particular countries. For example for www. tiespecialist. com I want people in the UK who are searching for tie, ties, silk ties, woven silk ties, wedding ties, bow ties, polyester ties etc. The adverts appear on the right hand side of Google and you only pay when someone clicks through. In this way it is better than traditional advertising in that you know you get visitors to your site for your adspend.

How far your ad is from the top depends on how much you are willing to pay and your click through rate (CTR). In essence Google maximises the money making potential of each search by showing the ads people are most likely to click on and that pay the most. When I started my website I place in lots of keywords, wrote an ad and aimed it at the UK. I quickly found that I needed to pay 20p to 35p per click to be in the top 3 for the ads. In the first week of advertising I generated 150 clicks or so per day at 25p each on average and got no sales. After the 1st week sales started to come in at the rate of 1 or 2 per day. When I worked out the cost per conversion I was paying £40 per day for 1 to 2 sales, giving a cost per order of £20 to £40 pounds. The yucky margin on an average order is only £10 so I am losing money with every order. This is to be expected at first and I was quite prepared to invest in marketing to get potential customers so that I could improve my website and then build a customer base which would give me long term profitability. But to make pay per click advertising work I needed to do a whole bunch of things:

Cut my cost per click dramatically Improve my conversion rate once people clicked through to my site Increase the average order size I have managed to get the cost per click down to less than 15p per click average by doing a number of things.

First of all I tested lots of keywords to find ones for which there was small competition. For example “how to tie a tie” has no one else advertising on it so I can get traffic for the minimum of 2 pence per click. But the keywords have to be relevant to your product and ultimately convert to sales. I have still found that the vast majority of searches are on the simple keywords; tie, ties so I have to find a way of getting in to that space if I want to get decent numbers of visitors.

Secondly, improve the ads. A fantastic feature of AdWords is that you can run multiple ads simultaneously and track the click through rates of each. Then you get rid of the worst performing ads. The key here is to change one part of your ad at a time (so that you know which change causes the effect) and to wait until you have had least 50 clicks on an ad before making a judgement on it (at low numbers of clicks the performance can fluctuate dramatically with chance). As your ad gets better CTR you get more visitors and a higher ranking so you can reduce the amount per click and still get the same performance. I have improved my average click through from 0. 75% when I started to 2. 6% by running better ads.

Thirdly, remove poor performing words. You will find that there are some words which are not particularly relevant or have lots of competition, where your clickthrough is low and cost high. I have found it is best to delete them. I have also used negative keywords which allow you to exclude certain words. For example with “tie” I found that some people were searching for “tie fighter” so had “-fighter” in AdWords to exclude these searches. This improves CTR and position.

Fourthly, check out the competition and choose where you need to be in the ranking. For my art website www. artspecialist. co. uk selling oil painting reproductions of masterpieces, I have found that for many words the competition are selling painting courses or prints. Why pay high CTR’s to rank above these companies when potential customers will be scanning past them anyway. I have found it really pays to type each keyword into Google and choose where you need to be to match your competitors. On some words I can be bottom and still be the first company selling oil painting reproductions .

I hope you have found this useful. Read more on my blog at http://specialist-paintings-ties. blogspot. com/. In the next article I will take about conversion rates

UK English woven silk tie business at http://www. tiespecialist. com UK reproduction oil painting business at http://www. artspecialist. co. uk Web marketing and internet entrepreneurship blog at http://specialist-paintings-ties. blogspot. com/

(c) Copyright Bayo Bamitale 2006
Many of us are interested in starting home-based businesses or quitting our full-time jobs. There is a marked difference between the psychology of the worker and that of the entrepreneur but the fantastic flicker of hope is that the entrepreneurial consciousness could be developed. If you are tired of your day-time job and have been thinking of leaving your job and striking out on your own, you need to reckon about this properly. It is necessary to examine yourself and question whether you have what it takes to be an entrepreneur; and if you don’t to go ahead and start the process of developing that consciousness. This article itemises some of the characteristics of an entrepreneur as well as the method by which those characteristics could be developed.
First, be clear about why you are starting business. Why become an entrepreneur? There are various reasons that one may consider in striking to become an entrepreneur and starting one’s own business. Some strike out because they despise their bosses, some because they despise their jobs, some because they despise poverty and some because they despise commuting. Becoming an entrepreneur because you despise something may not be the right attitude. It is better to strive to start your own business because you like something. When the chips are down, you will need the energy of like to sustain you in the days of adversity. It is your like of business or entrepreneurship which will keep you going when partners desert you, or a project fails, or the tax-man comes with harassment, or you face other negative circumstances. So the first thing to do is to first settle all the hatreds and rather replace them with the like of something this is done at the level of attitude. Your attitude to business will determine your altitude in success.
Second, don’t go into business tabular rasa like a clean slate. You need to develop yourself along the business line. You need to learn some accounting skills, some law, some technology and some philosophy to be a excellent business-person. A excellent way to start is to join a network marketing system. When you join, don’t join because of the money although you can make a whole lot of money from this business but don’t make that your focus. Go with the intention of learning, especially learning to sell. To succeed in business, you need to know how to sell. You will need to sell your business thoughts to partners, to sponsors, to customers, and even to members of your work-force. And one excellent way to learn to sell is by joining a network marketing system and taking advantage of the fantastic training facilities provided there.
Third, know the difference between assets and liability. Many go out into business without understanding the difference between assets and liabilities. Your knowledge in this area is very vital to your success. So get some excellent training before you jump in.
Forth, know the power of systems. A business is essentially a system. Not understanding the power of systems will convert a business-man into a self-employed, and there is a difference between a business-man and a self-employed. A excellent business-man puts in place a system, which works irrespective of whether he is sleeping or working. The ability to do this is the difference between a business-man and a self-employed.
One needs to take a closer look at him or herself before going into business, but every attitude and characteristics required for entrepreneurial success could be developed by paying attention to critical factors, most of which are essentially psychological.

Bayo Bamitale , a consultant ,teaches
how to earn full time income working part time. His vision is to provide informational support for small scale businesses and budding
entrepreneurs.
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You may use this article freely provided it includes the author resource box and maintains the clickable links.
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Entrepreneurship is a multifaceted adventure that, without a doubt, closely resembles a roller coaster ride. When you start an entrepreneurial journey or “ride,” you are aware of the gamut of experiences, both disappointing and rewarding, that you will encounter as you undertake this challenge.
Entrepreneurial challenges are not unlike most challenges in life. Hard work, long hours, and nervous moments are just a few of the characteristics of the journey to most successful outcomes.
Reoccurring questions often roam the business mind, and—although they may be phrased in a variety of ways—are basically centered on these four primary issues: more sales, more cash, more time, and more of the “right” people.
Starting your own business is an undertaking that requires more than vision, inspiration, sweat equity, money and determination. It is a leap of faith that demands that you let go of everything that is safe, comfortable, and proven. It is getting “outside the box” in the largest way possible.
Beginning a new business venture can be risky, perilous, and harrowing. But, with the proper preparation, the appropriate knowledge, and the counsel of a mentor or a trusted advisor, it can be a liberating and an extremely rewarding experience.
There’s a reason why many of America’s most successful people are entrepreneurs who started their own business and then saw them take off to unimaginable heights. There’s a reason why the Horatio Algers of the world continue to inspire thousands of entrepreneurs every day. There is a reason why some of America’s greatest companies started with an thought, with meager seed capital, and with an individual who had a maniacal belief in the potential of an thought, and— along with determination and perseverance— saw it through to success.
But, for every success, there are hundreds of failures. The statistics are not only sobering, but downright frightening. More than half of all businesses started today will fail. The failure rate is astounding. Take a look at recent U. S. Bureau of Labor Statistics data, and this is what you will learn: After two years, across all sectors, 44 percent of all new businesses are no longer in business. After four years, 66 percent no longer exist. And, these survival rates don’t vary much by industry.
What do the statistics tell us? That most new businesses—whether they’re founded on the most brilliant thought since the theory of relativity or production of a mundane but exquisitely necessary manufacturing component—are making fatal mistakes that will ultimately lead them to bankruptcy. This much is certain. If more than half of all new ventures fail, there are lessons that are not being learned.

Have you ever wondered how those who work within a corporate atmosphere view entrepreneurship?

I sat down with Kim Lariccia who is apart of the senior management team at Progressive Insurance. Kim has practical advice for both budding and seasoned entrepreneurs. This interview was centered on four areas of opportunities for most organizations. These four areas are: leadership, systems, money and business growth. Understanding these four components of an effective enterprise will catapult your business to the next level.

The first section dealt with was leadership. My question to Kim was, “What are the components of a excellent leader?” Her answer was, “A leader has to be a dynamic thinker. ” A competent leader must be able to reckon on many plateaus; organizational, interpersonal and personal. At the organizational level a leader must reckon about the creation and articulation of the business’ vision, the culture of the enterprise and the return on human capital. The interpersonal plateau as Kim puts it is “leadership is based on relationship”. The people within your company must trust you, believe in you and in your vision. On a personal level, a leader must build mental and emotional fortitude. Mental fortitude is necessary, because as a leader you must reckon on many different levels. Emotionally fortitude is required, because ultimately you are responsible for the end result. Therefore your EQ (emotional quotient) must be high for you to have your vision completed through the efforts of your personnel.

The next subject Kim and I talked about was systems. A system is a specific way of doing some thing that brings about a desired result. Entrepreneurs must realize the importance of system development and maintenance if they desire to build an effective organization. Kim indicated that entrepreneurs should use the concept of benchmarking.

Finding the “best practices” of running a business within your specific industry and then mastering those systems is benchmarking. Do you know what your competitors are doing with their processes, policies and procedures? Kim gave a fantastic suggestion for entrepreneurs. Carry an “observation notebook”. You will use this notebook to document the systems you observe within your industry and among your competition. Write down systems, practices, and processes, both excellent and terrible and how they made you feel.

Every experience a customer has at your place of business will affect them on an emotional level. Does this sound familiar, “When I walked into that store no questioned me if I needed help. They acted as if they didn’t want my business, so I am going to spend my money where I am appreciated. ” The customer’s experience is not logical, it’s emotional. As Kim said, “A fantastic customer experience is what drives success”.

Then naturally, our conversation went to the topic of money. My question to Kim, “What should entrepreneurs focus on, cash-flow or profitability”. Her answer, “Cash-flow is the reality to stay in business, that is why you need solid backing from the start. Once your cash-flow is consistent, you can position your company to become profitable”. Entrepreneurs must first get the resources they need so their companies can achieve a consistent cash-flow. A resource is not only currency. It’s having a network of trustworthy colleagues that you can bounce thoughts off of. It’s also aligning yourself with employees that compliment you abilities. We finished this area with Kim saying, “Don’t panic about the money do your research” This statement transition the interview to our last topic, business growth.

The question that was questioned, “How can an entrepreneur grow an organization?” Kim indicated, “It all starts with research, and this is the step most entrepreneurs try to skip”. First, you learn about the opportunity. Is it excellent, terrible or indifferent to you? If it is a excellent venture, then investigate to find out the type of infrastructure that is needed to capitalize on the opportunity. Finally, do your plotting and your forecasting for your new business.

“If possible after the research stage”, Kim said, “pilot your business”. Some call this practice, test marketing. During this process you will find out if your research was accurate. This is also where you will tweak and fine-tune your systems. The piloting stage will give you a glimpse of the capital needed and returns that are possible without a huge upfront investment. Also, while you are piloting your business, make sure you document the best practices for your organization so your future employees can perform their jobs.

At the conclusion for the interview I questioned Kim, “What final advice do you have for entrepreneurs?” Her response, “Concern yourself with the ‘what if’s’. What if your company grows twice or four times as quick as you expected? What will you do? What if your business does not grow as quick as you have projected? What will you do?” When entrepreneurs concern themselves with the ‘what if’s’, they will focus on the necessary up front preparation; research, plotting and documentation. As a result, they will build and effective organization.

Thank you to Kim Lariccia for your time and needed wisdom. This information will help entrepreneurs on their journey to building an effective organization.